Smart phone marketing goals and global plan PHASE 1 INDIVIDUAL PROJECT KENNETH C HOLMES MKTG630-1502B-03 PROFESSOR GENE TOPPER MAY 25, 2015

Project goals Obtain 40 percent brand awareness in 3 months Obtain 20 percent market share in 6 months Obtain 80 percent customer satisfaction rating in 6 months Obtain a 50 percent rate of intent to repurchase Going global in 6 months Mobile Manufacturing’s ultimate goal Obtain a 40 percent brand awareness in three months: MM currently has a brand awareness of ten percent. To obtain the 40 percent brand awareness within three months, Mobile Manufacturing will have to initiate a strong marketing campaign to inform consumers about MM’s new product, its features, its price, and its environmentally friendly approach to cell phones and packaging. Given sufficient television, internet, and print advertising, MM should establish enough buzz, and product interest to gain the targeted brand awareness. Obtain a 20 percent market share in six months: MM currently has a ten percent market share. With Mobile Manufacturing introducing their new smart phone at a price below the retail of most smart phones, and with applications, internet access, and games suitable for today’s youth and teenage market (ages 10 – 20), the new smart phone should be a smart and practical choice for parents who want their children to have entertainment at their finger tips, and the security of knowing their children, and help are just a phone call away. All this in a product priced under $100, not accounting for service deals available at local carrier stores. The new product promotions and incentives should be sufficient to produce a doubling of their market share in 6 months. Obtain an 80 percent customer satisfaction rating in six months: The mission is that Mobile Manufacturing obtains their 80 percent customer satisfaction rating based on the quality of the phone, the applications built into the phone, its ease of use, and its environmentally friendly composition. With a new phone on the market that not only meets, but exceeds environmental and Federal standards, and provide the quality, durability, and applications necessary to compete in today’s marketplace, 80 percent should be an achievable goal. Obtain a 50 percent rate of intent to repurchase: With MM introducing a Smart Phone of high quality, top applications, easy to use, and environmentally friendly, it is the mission for consumers to be so impressed with MM’s new approach, price structure, and advertising campaign, they will want to see the next big thing from Mobile Manufacturing. Going global within 6 months: Marketing is the U.S. is a wise place to start, but the fact is less than 10 percent of U.S. manufacturers participate in the global market, yet their overseas competitors are active participants in the domestic market. This gap creates a huge marketplace and labor force for MM to tap into, and to use global competition to their benefit (Virtual Advisor Inc., 2013). Mobile Manufacturing’s ultimate goal: Above all goals, it is the mission of Mobile Manufacturing to reestablish themselves as a market leader, with innovation, environmental sustainability, and reasonable price structures as their focus. It is the hope of everyone at Mobile Manufacturing that the marketplace embraces the new products, and the mission to provide the finest quality cellular products, at prices that fit any budget, and the concept and goal of producing cellular products that preserve all of our resources for future generations.

Smart phone construction Reasons for sustainable construction Recycled and alternative materials for sustainable production Additional environmental processes Smart phone packaging Benefits for Mobile Manufacturing Reasons for sustainable construction: Today many factors are in play regarding consumer product manufacturing including: many companies implementing environmentally friendly practices such as environmentally safe, biodegradable, recyclable, and recycled goods; the Federal Government initiating responsible leadership through guidelines that encourage and promote natural resource management, and the application and use of alternative energy sources to alleviate, and reduce global energy issues; companies on a large scale being encouraged to use recycled products, produce their own energy to run their facilities, and reduce their carbon footprint; and the green movement encouraging and demanding the proactive development of environmentally friendly and sustainable processes, products, and strategies (N.A., 2013). Recycled and alternative materials for sustainable production: With business, industry and consumer awareness of our planets finite resources at an all time high, it is essential Mobile manufacturing develop new products that satisfy environmental and federal guidelines, meaning the new Smart Phone should be made of recycled and alternative plastic materials. The smart phone should be manufactured using: (PLA) Polylactic Acid Plastic, which is a renewable and biodegradable plastic made from glucose or corn starch; should us the (ORB) organic radical battery, which full charges in 30 minutes, and uses no harmful metals; and use recycled plastic and natural materials including bamboo (N.A., Guide to greener mobile phone companies, 2012). It is also recommended MM institute a phone return and buy back policy that enables the recycling of obsolete or broken phones, and help MM to commit to their environmentally friendly policy. Additional environmental processes: Additional environmental processes include: reduction of greenhouse gas emissions: hazardous substances elimination in all products; the return and recycling of obsolete phones; the use of sustainable product and packaging material, in place of unsustainable product and packaging materials; the application of the most efficient manufacturing processes to reduce their carbon footprint, and the use of renewable energy to power their supply chain, in place of fossil fuels; design the phone for easy disassembly and repair, and make the recycling of components and metals cost effective; reduction of packaging and accessories to save on paper and plastic, and further reduce Mobile Manufacturing’s carbon footprint; and lastly, use natural gas or bio-diesel trucks for shipping products (N.A., Guide to greener mobile phone companies, 2012). Smart phone packaging: It is also necessary for the new Smart Phone to be packaged using recycled paper only. MM could use a simple brown box for the phones packaging, and market their new product as the environmentally friendly Smart Phone. The packaging should be simple, and have Mobile Manufacturing’s new logo (a cell phone and a green leaf), with their new slogan “Cell phone made with our commitment of preserving and protecting our natural resources for the next generation”. Benefits for Mobile Manufacturing: The application of these steps will keep Mobile manufacturing in step and in-line with government and environmental regulations, will reduce their energy dependence, their carbon footprint, and will provide a huge selling point for both advertising and marketing that environmentally conscious consumers will appreciate.

The global plan Targeting the Chinese cell phone market Cell phone regulations in China China’s market trends The ideal cell phone specifications Targeting the Chinese cell phone market: For global entry, China was chosen for Mobile Manufacturing’s international debut, because their saturation point has not been reached, they are experiencing tremendous growth potential, and with 70 percent of cell phone shipments from Silicon Valley being sent to developing countries, this move should be logical. In fact, the average Chinese consumer is willing to spend over ten percent of their monthly income to be connected, and they are eager for the connection and convenience (Kocki, 2012). Cell phone regulations in China: For starters the mobile phone industry is regulated by the Ministry of Industry and Information Technology. Prior to establishing shipment contract for cell phones, there is a series of steps that must be adhered to prior to authorization. First the manufacturer must obtain a Network Access License (NAL), which is a prerequisite for all equipment used in telecommunication. The certification tests the cell phone for: safety, Emerging Markets Communications (EMC), which enables the use of cell phones in remote locations all around the world (Market Watch, 2014), and telecom and radio spectrum. Next, the device must be approved for an SRRC ID. This ID is required for any device with radio, WiFi, GSM, and CDMA functions. When the SRRC ID has been approved, it will be applied to the device, packaging, and the user manual. Next, the phone must be certified by the Compulsory Certification Program (CCC), which includes safety tests, and EMC/EMI requirements. The test must be performed in china, and involves factory inspection. Once the CCC has received the submission and fees, the CCC certification will be issued. The product will be labeled with the CCC mark prior to being sold in China. And lastly, the Administration Measure on the Control of Pollution Caused by Electronic Information Products (RoHS), is administered. This requires the phone to be tested for six hazardous substances including: Pb, Hg, Cr6, PBDE, and PBBE). Then it is just the process of receiving the marking, labeling, and documentation. Once all of these steps have been accomplished, the phone can be packaged and sold in the China’s market place (N.A., Cell Phone Compliance Regulations: How to Sell a Cell Phone in China, 2014). China’s market trends: Starting from 2006, their domestic cell phone industry has grown in leaps and bounds, with sales of 100 million phones. Their 2007 domestic sales had grown to 190 million phones, with increases due to customer upgrading, new technologies, and ideal bundled phone service price structuring. 2005 - 2008 were transformational years for their cell phone industry, with two separate markets forming including: a rural cell phone market interested in low priced phones; and the other interested in high tech cell phone, with multimedia, mobile television, MP3, and GPS. 2011 was the year of the smartphone, with its popularity increasing in leaps and bounds, and revolutionizing their mobile phone market. Since then, the popularity of the smart phone has reduced production costs, and reduced the retail pricing of their smartphones to $145 USD. The result is a global competitor raising the bar for every other cell phone manufacturer, and forcing decreases in pricing of the best smartphone technologies. Currently China’s market is dominated by cell phones priced under $290, and account for 60 percent of the total market (N.A., Mobile phone industry in China, 2015). It is important to point out that the majority of cell phone services in China are prepaid, meaning consumers must purchase prepaid calling cards to utilize their phone service. There is a growing trend of consumers tying their cell phone to a monthly service, largely due to tremendous cost reductions for the consumer, and the introduction of the iPhone in 2009 (N.A., Mobile phone industry in China, 2015). The ideal cell phone specifications: Cell phone specifications will depend on the market being targeted. The predominant factor is the smartphone, but the price structure is the next factor. Consumers in rural areas will want a more traditional smartphone for calls and internet, priced at $50 USD, while the tech savvy consumer wants a smartphone with all the latest high tech gadgetry, priced under $290 USD. It is also important the phone be durable, and have a long battery life of up to one week (N.A., Mobile phone industry in China, 2015).

the global plan cont. Targeting the East India cell phone market Cell phone regulations in East India East India’s market segments East India’s ideal cell phone specifications Targeting the East India cell phone market: For global entry, East India was also chosen for Mobile Manufacturing’s international debut for several reasons: their saturation point has not been reached, they are also experiencing tremendous growth potential, and with 70 percent of cell phone shipments from Silicon Valley being sent to developing countries, this move should also be logical. In fact, the average East Indian consumer is also willing to spend over ten percent of their monthly income for the luxury of being connected, and they are eager for the connection and convenience (Kocki, 2012). The fact is East India has a large emerging market, with two million subscribers, and a potential upgrade market of up to 15 percent. There are several new entrants seeking to obtain their share of the market including: Samsung and Panasonic. In addition, East India is gearing up to become one of the worlds largest markets for durable consumer products, which creates tremendous potential for overseas companies (N.A., Market segmentation in mobile phone market, Marketing Management, 2012). Cell phone regulations in East India: Environmental laws and issues are addressed by the Supreme Court of India, who job it is to be proactive with all of India’s environmental issues and causes. The court has set standards for environmental protection, but only in principle. The problem with this arrangement is it requires lengthy litigation, resulting in further uncontrolled water, air, and forest degradation, while tens of thousands of people die from diseases related to their pollution issues. Basically, environmental activist groups have given the Supreme Court a failing grade, and have proven their ineffectiveness and incompetence when it comes to protecting their environment. The Supreme Court continues to provide protection for industries owned by the state, that continue to destroy the environmental quality, and follow abusive labor practices. As a result of my research, there are apparently no regulations regarding cell phone safety or pollution controls (N.A., Environmental issues in India, 2015). East India’s market segments: There are basically four consumer markets for cell phones in East India. The first, the high fliers, who are the young professional (corporate executive), age 25 to 45, who uses the phone for professional contacts and improving work efficiency, and happens to be the largest segment. The second, is the techie group (technology people), who use the phone for heavy internet applications including: email, banking, checking stock prices, news, sports, headlines, music, and more. The third, The high end segment consisting of CEO’s and affluent individuals, who want every high tech feature available, and usually purchase the most expensive models. The fourth, the social contact segment, who use the cell phone for socialization and just keeping in touch with friends and family (N.A., Market segmentation in mobile phone market, Marketing Management, 2012).   East India’s ideal cell phone specifications: For the high fliers, the corporate executives, the cell phone must be practical for effective communication and work efficiency, and should be priced between $200 to $300 USD, or 13,000 to 20,000 Rupees. For the techie segment, cell phones must include internet capability, and can be priced up to $212 USD, or 13,500 Rupees. For the high end segment, the CEO and the affluent, phones should include every high tech feature available, and be priced up to $627 USD, or 40,000 Rupees. For the social contact segment, where phones are used primarily for keeping in touch, phones should be priced under $188 USD, or 12,000 Rupees (N.A., Market segmentation in mobile phone market, Marketing Management, 2012). The reality is cell phones are segmented more by price and less by taste level. Based on research performed by Panasonic, cell phones between $94 and $157 USD dominate the market with an 80 percent market share, cell phones between $157 and $212 USD have only a 16 percent market share, and cell phones priced $212 USD and more have only a four percent market share. Based on research performed by Samsung, cell phones priced under $133 USD dominate the market with a 60 percent market share(N.A., Market segmentation in mobile phone market, Marketing Management, 2012).

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references N.A. (2014, October 10). Cell Phone Compliance Regulations: How to Sell a Cell Phone in China. Retrieved from assentcompliance.com/blog/index.php/cell-phone- compliance-regulations N.A. (2015, May 23). Environmental issues in India. Retrieved from en.wikipedia.org/wiki/Environmental_ issues_in_India N.A. (2015, April 12). Mobile phone industry in China. Retrieved from en.wikipedia.org/wiki/Mobile_phone_industry_in_China Virtual Advisor Inc. (2013). How to Expand Your Business Globally. Retrieved from www.va- interactive.com/inbusiness/editorial/bizdev/ibt/expand_g .html